The federal government of Pakistan has decided to shut down utility stores across the country. This decision comes in the wake of mounting financial constraints, as revealed by Saif Anjum, the Secretary of the Industry and Production Ministry, during a recent Senate committee meeting.
Financial Constraints Force Utility Store closures.
The Senate Standing Committee was briefed on the critical financial situation facing the government, which has led to the difficult decision to close the Utility Stores Corporation (USC). The rightsizing committee, tasked with reducing government expenditures, presented proposals for the shutdown of utility stores, among other cost-cutting measures. The federal government, grappling with insufficient funds, sees the closure of these stores as a necessary step to address the ongoing financial difficulties.
The closure plan, which has already been put forward by the cabinet secretary, will soon be presented to the federal cabinet for final approval. Once the plan is approved, a detailed timeline for the systematic closure of utility stores across Pakistan will be established. This move is part of a broader effort by the government to streamline operations and reduce expenses in the face of severe budgetary limitations.
This decision aligns with the government’s recently approved five-year privatisation program, aimed at reducing the financial burden by divesting from state-owned enterprises. The privatisation program, which will be implemented in three phases, includes the privatisation of major entities like Pakistan International Airlines (PIA), House Building Finance Corporation (HBFC), and several electric supply companies. Eventually, the Utility Stores Corporation, along with State Life Insurance Corporation and Pakistan Re-Insurance Company, will also be privatised as part of this comprehensive plan.
The closure of utility stores marks a significant shift in the government’s strategy to manage its finances. While this decision may have far-reaching implications for consumers, it underscores the urgent need for fiscal reforms in Pakistan. As the country navigates through these challenging economic times, the government’s focus remains on reducing expenditures and addressing the financial constraints that have necessitated such tough measures.
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